Fair Play: More Equal Laws Boost Female Labor Force Participation

Christian Gonzales, Sonali Jain-Chandra, Kalpana Kochhar and Monique Newiak

No 2015/002, IMF Staff Discussion Notes from International Monetary Fund

Abstract: This Staff Discussion Note examines the effect of gender-based legal restrictions and other policy choices and demographic characteristics on female labor force participation. Drawing on a large and novel panel data set of gender-related legal restrictions, the study finds that restrictions on women’s rights to inheritance and property, as well as legal impediments to undertaking economic activities such as opening a bank account or freely pursuing a profession, are strongly associated with larger gender gaps in labor force participation. These factors have a significant additional impact on female labor force participation over and above the effects of demographic characteristics and policies. In many cases, the gender gaps caused by these restrictions also have macro-critical effects in terms of an impact on GDP. The results from this study suggest that it would be beneficial to level the playing field by removing obstacles that prevent women from becoming economically active if they choose to do so. In recommending equal opportunities, however, this study does not intend to render a judgment of countries’ broadly accepted cultural and religious norms.

Keywords: SDN; labor force; female labor force participation; gender equity; legal rights; labor force participation; participation gap; OECD country sample; inheritance right; Policy recommendation; policy conclusion; Women; Gender diversity; Labor force participation; Legal support in revenue administration; Gender inequality; Sub-Saharan Africa; Global; Middle East; North Africa; South Asia (search for similar items in EconPapers)
Pages: 34
Date: 2015-02-23
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Citations: View citations in EconPapers (29)

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